British Pound under Pressure from Brexit Problems. The British pound will be bothered by the latest developments regarding the Brexit stalemate on Wednesday.
Around 2 p.m. the British currency is at a loss of just under 0.9 percent. One British pound now costs 1.15 euros.
The exchange rate of the pound relative to the dollar has also dropped by about 0.7 percent. For a pound, you now get an around1.31 dollar.
According to current agreements, the British will leave the EU on the night of 29 to 30 March.
A deal about the divorce conditions is just not there yet, and for the time being, not seem to be due to the prominent division of the British House of Commons.
The British Prime Minister, therefore, declared on Wednesday that she had requested a delay of the Brexit until 30 June.
Not long after, however, an EU memo leaked out that the European Commission intends to give the British government a choice between an extension until May 23 –
The day of the European elections – or an extension until the end of 2019 or later.
“Any other option (such as a particular extension until June 30, 2019) would cause serious legal and political risks for the European Union,
and would import some of the current uncertainties in the UK into the EU27,” the memo said.